President Donald Trump has made a strong demand in the ongoing trade dispute
with the European Union. On April 7, 2025, he told the EU they must buy $350 billion in U.S. energy to get lower tariffs. He said this at a White House press conference. It was an answer to the EU’s recent offer to remove tariffs on cars and industrial goods, which Trump quickly said was not enough. The U.S. has a $350 billion trade deficit
with the EU, and this big demand could change how the U.S. and EU trade with each other. Let’s break it down.
Event Details
Here’s what you need to know about this growing trade dispute:
- Demand Specifics: Trump said the EU must promise to buy $350 billion in U.S. energy to lower the tariffs. He said, “We have a $350 billion deficit with the EU, and it will go away quickly.” This is meant to cut the trade deficit all at once.
- Response to EU Proposal: The EU, led by Ursula von der Leyen, offered a deal to remove tariffs on industrial goods. Trump rejected it, saying, “No, it’s not
enough.” He made it clear that the EU must agree to more, like buying a lot of
U.S. energy.
Broader Context
This isn’t just about energy or tariffs-it’s part of a bigger picture. Here’s what’s behind Trump’s plan:
- Trade Deficit and Policy Goals: The U.S. has a $350 billion trade deficit with the EU. Trump wants to use tariffs and energy sales to make trade fairer. This
matches his long-time goal to protect American companies and grow the economy. - Non-Tariff Barriers: Besides tariffs, the U.S. is pointing out other EU barriers, like extra taxes and rules, that make it tough for U.S. businesses to trade. These problems need to be fixed for any deal to work.
EU Reaction and Global Implications
Trump’s demand is causing a stir across the Atlantic and beyond. Here’s how it’s going:
- EU Preparations: The EU is rushing to find ways to please Trump and avoid his tariffs and at the same time they are planning to tax $28 billion worth of US goods as a way to counteract Trump’s tariffs. But this huge energy demand
makes their plans harder and adds trouble to the talks. - Global Trade Tensions: Trump is putting at least 10% tax on all goods coming into the U.S., and higher taxes on countries which tax U.S. imports. This has the world worried about trade wars and economic problems. The EU is
preparing to hit back with $28 billion in two phases. The first part starts on April 15, 2025, and the second part on May 15, 2025.
